ORIGINAL: You are correct on both counts. "Increased" in this context is the same as "More". So it's a 1.5-1.88 damage multiplier.
EDIT: So, the reason I said that is I was thinking of the previous version of assassin's mark that had enemies "take % increased extra damage taken from critical strikes" or the Champion ascendancy's Worthy Foe (enemies taunted by you take 20% increased damage). These are both "increased" but behave as a More multiplier at the end of the damage calculation which we know because of the word "taken" or "take".
It will stack additively with other sources of increased damage taken, which then add up to one single source of total increased damage taken by the enemy, which is a multiplier to the total damage. This is different than saying it's behaving as a More multiplier, like Mark says, because it's not stacking multiplicatively with other More modifiers. Source: https://www.pathofexile.com/forum/view-thread/1668174/page/1#p13330142
Maybe /u/Mark_GGG can confirm that edit.